GAIL pre-pones US gas supplies, eyes new deals to meet India#39;s energy demand

GAIL pre-pones US gas supplies, eyes new deals to meet India#39;s energy demand

India’s No.1 gas transporting and marketing firm has long-term liquefied natural gas (LNG) supply contracts from the US to Australia and with Russia, supplementing domestic gas supplies.







PTI









February 09, 2022 / 03:47 PM IST





GAIL (India) Ltd has pre-poned the supply of gas from the US and is looking to contract more LNG next year as it doubles down efforts to secure affordable energy supplies to meet the needs of Asia’s third-largest economy, chairman Manoj Jain said.

India’s No.1 gas transporting and marketing firm has long-term liquefied natural gas (LNG) supply contracts from the US to Australia and with Russia, supplementing domestic gas supplies.

"In 3Q (October-December 2021) we preponed a couple of cargoes (LNG shiploads) from supplies that we were to receive next year and we did it again in the current quarter,” Jain told PTI.

This because US LNG costs one-third of the price of gas available in the spot or current market.

GAIL has a 5.8 million tonnes per annum LNG contract with US suppliers.

These are all linked to the US gas market, Henry Hub where the current rate is USD 5.45 per million British thermal unit.

In comparison, the spot